The agreement grants Fine Foods an exclusive licence for the production and supply of five formulations containing OptiBiotix's LPLDL strain in Europe in return for royalty payments and a commitment to maximising the financial return for both parties.
LPLDL works by affecting the metabolism of bile acids in the intestine and is a viable non-prescription alternative to cholesterol-lowering statins, which are known to have unwanted side effects for many users.
Fine Foods is based in Italy and has more than 30 years' experience in the design, development and manufacture of customised formulations and presentations for the pharmaceutical and food supplement industry.
It has full good manufacturing practice-certified production facilities and a recognised expertise in developing unique formulations and presentations containing probiotic strains.
Under the terms of the agreement, Fine Foods has an exclusive licence to produce and commercialise five new formulations containing OptiBiotix's LPLDL: one for glucose control; one for reduction of high blood pressure; one for reduction of cholesterol levels and two for the reduction of cardiovascular risk.
These proprietary formulations will be marketed in innovative presentations including sachets and 'melt in the mouth' sticks, to Fine Foods’ extensive European network in both the pharmaceutical and food supplement industry.
“This agreement extends the range of products and presentations containing OptiBiotix's LPLDL and creates an opportunity to access global pharmaceutical markets with an established industry supplier,” said Stephen O’Hara, the chief executive officer of OptiBiotix.
“We chose Fine Foods due to its industry experience, reputation, rapid revenue growth, and impressive client list of global customers in both the pharmaceutical and food supplement sectors. We believe our strategy of identifying and building partnerships with industry-leading partners like Fine Foods, provides the best opportunity of rapidly building revenue streams, and establishing LPLDL as a leading global brand," he added.
House broker finnCap said it was encouraged by the announcement, which continues to demonstrate the company’s ability to attract high calibre, global partners, and eager to use the potential inherent within LPLDL.
“We expect further announcements for regions in which OPTI products can help differentiate and expand existing marketing products,” the broker said.
Shares in OptiBiotix were up 4.7% at 62.8p in early deals.